Industry & Retail
From The Report: Oman 2025
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Oman is steadily transforming its economy by reducing reliance on oil and gas, and promoting growth in other sectors. While hydrocarbons remain important, the country has made significant strides in expanding its manufacturing and retail industries. These developments are supported by government reforms, strategic investment, and large-scale infrastructure and industrial projects. As a result, employment in manufacturing and retail has been growing faster than the national average, reflecting a broader economic shift. Improvement in regulatory frameworks and institutional support has helped create a more advanced and globally integrated business environment. This evolving landscape positions Oman’s industrial and retail sectors for sustainable growth, while also aligning with the country’s long-term economic diversification goals. The focus on creating a more balanced economy is reshaping the job market and attracting both domestic and international investment, contributing to a more resilient and competitive economic model for the future.

This chapter contains interviews with Ahmed Akaak, Acting CEO, Special Economic Zone at Duqm; Dawood Al Hadabi, CEO, Public Establishment for Industrial Estates; and Harssha Shetty, CEO, Jindal Shadeed Iron & Steel.

Articles from this Chapter

Overview

Market momentum: Economic reforms reshape the commercial landscape as hydrocarbons dependency diminishes
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Oman has taken numerous steps to reshape its economic landscape in recent years, gradually moving away from dependence on hydrocarbons. While oil and gas continue to play a significant role in GDP and exports, the sultanate has made notable progress in developing its manufacturing base, expanding retail activity, and attracting local and foreign investment in strategic sectors. Key reforms, government-led initiatives, and a wave of infrastructure and industrial projects are shifting the economic balance. Employment trends reflect this transition, with strong growth in manufacturing and retail jobs outpacing the national average. Backed by an evolving…

Interview

Sector strength: Ahmed Akaak, CEO, Special Economic Zone at Duqm, on how green projects and technological innovation drive growth
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Interview: Ahmed Akaak To what extent can infrastructure development attract and sustain industrial investment? AHMED AKAAK: Globally competitive infrastructure is essential to attracting and sustaining industrial investment in Oman’s economic zones. For example, critical assets at Duqm include the multipurpose fisheries port, which features dedicated fisheries industrial complex housing processing factories and a canning plant. Oman also has advanced industrial facilities, zones for petrochemicals…

Interview

Forward thinking: Dawood Al Hadabi, CEO, Public Establishment for Industrial Estates (Madayn), on incorporating advanced technologies
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Interview: Dawood Al Hadabi Which strategies is Oman using to enhance the competitiveness of its industrial areas? DAWOOD AL HADABI: The strategies being implemented are deeply integrated with the objectives outlined in Oman Vision 2040. This vision encompasses a comprehensive approach to diversifying the energy portfolio to reduce carbon emissions and the dependency on traditional sources like natural gas. This transition is not just about sustainability, but also about managing and potentially…

Analysis

Digital transformation: Industry 4.0 and machine-learning technologies are reshaping the manufacturing landscape in emerging economies
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Amid the backdrop of dynamic shifts in global trade patterns and technological advancement, Industry 4.0 and artificial intelligence (AI) are substantially reshaping manufacturing landscapes in emerging markets. Although challenges exist for full implementation – including infrastructure and skill gaps – rapid urbanisation and a burgeoning young workforce in these countries drive demand for automation and smart technologies, in tandem with highly connected global supply chains. As such, many emerging markets have seen substantial progress in this area. Industry leaders are likely to continue adopting such technologies going forwards, benefitting…

Interview

Foundation development: Harssha Shetty, CEO, Jindal Shadeed Iron & Steel, on leveraging the sultanate’s potential for low-CO2 steel production
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Interview: Harssha Shetty What role is the iron and steel industry expected to play in Oman’s development and industrialisation? HARSSHA SHETTY: The iron and steel industry is pivotal to Oman’s economic development and industrialisation, aligning with Oman Vision 2040. Historically, manufacturing – specifically steel production – has been a catalyst for wealth creation. Steel is a crucial building block for infrastructure and machinery, making it essential to economic growth. Oman’s economy,…

Analysis

Long-term appeal: Increased competition among buy now/pay later providers with greater penetration in emerging markets
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Building on the momentum seen in the e-commerce space during the Covid-19 pandemic, the buy now/ pay later (BNPL) model is one of the fastest-growing segments in consumer finance, particularly in emerging markets. BNPL providers offer point-of-sale loans that consumers can repay in instalments over the course of weeks or even months. Charging little to no interest, these microcredit providers make profit via transaction fees paid by the retailer, offering increased sales and customer conversion in return. Highlighting opportunities in the space, in June 2022 US tech giant Apple announced it would debut its own delayed payment service, entering…